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Schuss inc can sell preferred shares for $78 with an estimated flotation cost of $4.00. The preferred stock is anticipated to pay $12 per share

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Schuss inc can sell preferred shares for $78 with an estimated flotation cost of $4.00. The preferred stock is anticipated to pay $12 per share in dividends. a. Compute the cost of preferred stock for Schuss inc. (Round the final answer to 2 decimal places.) Cost of preferred stock b. Do we need to make a tax adjustment for the issuing firm? Yes No

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